Tinder founders sue parent companies over $3-billion valuation
Tinder’s cofounders are suing IAC and Match Group over what it says was a bogus valuation of the company, the Los Angeles Times reported.
According to the lawsuit, they undermined the company’s valuation with false information to deny the cofounders billions in stock options.
Tinder was valued at a “low-ball” amount of $3 billion in 2017, according to the report. The plaintiffs are asking for a minimum of $2 billion in damages.
Match and IAC said the lawsuit has no merit, and the valuation was conducted with independent oversight from two investment banks.
“Mr. Rad (who was dismissed from the company a year ago) and Mr. Mateen (who has not been with the company in years) may not like the fact that Tinder has experienced enormous success following their respective departures, but sour grapes alone do not a lawsuit make,” said the companies.
Sean Rad and Justin Mateen are the cofounders of Tinder, along with Jonathan Badeen.
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